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The following is an excerpt from the MERS website--and this is the system that is currently being challenged in many states as the vehicle that holds the mortgages on homes about to be foreclosed upon:

"Mortgage Electronic Registration Systems, Inc. (“MERS”) is a proper party that can lawfully foreclose as the mortgagee and note-holder of a mortgage loan. MERS Membership Rule 8 provides required guidelines that must be followed when MERS is the foreclosing entity. Please click here to access the Rules of Membership, and reference the Rule 8 requirements.

In mortgage foreclosure cases, the plaintiff has standing as the holder of the note and the mortgage. When MERS forecloses, MERS is the mortgagee and it is the holder of the note because a MERS officer will be in possession of the original note endorsed in blank, which makes MERS a holder of the bearer paper. MERS will not foreclose unless the note is endorsed in blank and held by MERS. "

The challenge seems to be that accusations are being made that signatures and dates have been "robosigned" and fraudulently entered without reviews of accuracy of information.

If you or someone you know is facing this situation, alert them to seek legal counsel to see if this will have an effect on them.